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UNOFFICIAL COPY OF HOUSE BILL 1272 M4 6lr0525 By: Delegates Smigiel, Kelley, Rosenberg, and Sossi Introduced and read first time: February 10, 2006 Assigned to: Environmental Matters 1 AN ACT concerning A BILL ENTITLED 2 Maryland Agricultural Land Preservation Foundation and Rural Legacy 3 Program - Priority Preservation Areas - Protecting Public Investment in 4 Land Preservation 5 FOR the purpose of altering the maximum amount that may be expended from the 6 Maryland Agricultural Land Preservation Foundation Fund for certain 7 purchases of easements; providing that certain areas receive a certain portion of 8 funding for certain purchases; requiring the Foundation and the Department of 9 Planning to adopt regulations relating to the evaluation and certification of 10 certain areas; requiring the Foundation and the Department to evaluate certain 11 areas for certification in accordance with certain criteria; requiring the Rural 12 Legacy Board to award funds to certain areas in accordance with certain 13 criteria; requiring the Foundation, the Department, and the Board to make 14 certain reports to the Governor and the General Assembly; defining certain 15 terms; and generally relating to the Maryland Agricultural Land Preservation 16 Foundation and the Rural Legacy Program. 17 BY repealing and reenacting, with amendments, 18 Article - Agriculture 19 Section 2-508 and 2-509 20 Annotated Code of Maryland 21 (1999 Replacement Volume and 2005 Supplement) 22 BY repealing and reenacting, with amendments, 23 Article - Natural Resources 24 Section 5-9A-05 25 Annotated Code of Maryland 26 (2005 Replacement Volume and 2005 Supplement) 27 BY repealing and reenacting, without amendments, 28 Article - State Finance and Procurement 29 Section 5-307(a) 30 Annotated Code of Maryland

2 UNOFFICIAL COPY OF HOUSE BILL 1272 1 (2001 Replacement Volume and 2005 Supplement) 2 BY repealing and reenacting, with amendments, 3 Article - State Finance and Procurement 4 Section 5-307(b) 5 Annotated Code of Maryland 6 (2001 Replacement Volume and 2005 Supplement) 7 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF 8 MARYLAND, That the Laws of Maryland read as follows: 9 Article - Agriculture 10 2-508. 11 (a) (1) For purposes of this subtitle, the following words have the meanings 12 indicated. 13 (2) "Total amount to be allotted" means the amount, as certified by the 14 Comptroller, which remains in the Maryland Agricultural Land Preservation Fund at 15 the beginning of the fiscal year after payment of all expenses of the Foundation and 16 the board of trustees during the previous fiscal year as specified in 2-505(c)(1) and 17 (2) of this subtitle, and after subtraction of funds committed for payment as 18 consideration for easements purchased during previous fiscal years, and after 19 subtraction of any money remaining in the Fund as a result of a transfer of local 20 Program Open Space funds made pursuant to 5-903 of the Natural Resources 21 Article. 22 (3) "General purchases of easements" means purchases of agricultural 23 land preservation easements under this subtitle in which the governing body of the 24 county in which the land is located is not required to make a contribution to the 25 Maryland Agricultural Land Preservation Fund. 26 (4) "Matching purchases of easements" means purchases of agricultural 27 land preservation easements under this subtitle in which the governing body of the 28 county in which the land is located is required to make a contribution to the Maryland 29 Agricultural Land Preservation Fund of an amount equal to at least 40 percent of the 30 value of the easement for each such purchase. 31 (5) "Allotted purchases" means general or matching purchases made 32 pursuant to offers to buy tendered by the Foundation on or before January 31 of any 33 fiscal year. 34 (6) "County" means any county containing productive agricultural land 35 which is being actively farmed and which meets the criteria for land for which 36 easements may be purchased.

3 UNOFFICIAL COPY OF HOUSE BILL 1272 1 (7) "Eligible county" means a county as defined in paragraph (6) of this 2 subsection which has secured approval from the Foundation for a local agricultural 3 land preservation program. 4 (8) "COUNTY PRIORITY PRESERVATION AREA" MEANS A DELINEATED 5 GEOGRAPHIC AREA ESTABLISHED IN A COUNTY'S COMPREHENSIVE PLAN AS THE 6 COUNTY'S PRIORITY AREA FOR THE PRESERVATION OF AGRICULTURAL LAND AND 7 SUPPORT OF PROFITABLE FARMING AND FOREST PRODUCTION. 8 (9) "CERTIFIED PRIORITY PRESERVATION AREA" MEANS A COUNTY 9 PRIORITY PRESERVATION AREA THAT HAS BEEN APPROVED BY THE FOUNDATION 10 AND THE DEPARTMENT OF PLANNING, BASED ON AN ASSESSMENT OF THE COUNTY'S 11 ABILITY TO PROTECT PUBLIC INVESTMENT IN PRESERVATION WITHIN THE PRIORITY 12 PRESERVATION AREA, IN ACCORDANCE WITH THE CRITERIA DESCRIBED IN 2-509(F) 13 OF THIS SUBTITLE. 14 (b) (1) Beginning with fiscal year 1979, and in each fiscal year thereafter, 15 the Foundation shall determine the maximum amount which may be expended for 16 allotted purchases of easements on land located within each county. The maximum 17 amount which may be expended for allotted purchases of easements in any county in 18 any fiscal year shall be: 19 [(1)] (I) An amount, to be used for general allotted purchases, equal to 20 [one twenty-third] A PORTION of one half of the total amount to be allotted TO A 21 COUNTY IN ACCORDANCE WITH PARAGRAPH (2) OF THIS SUBSECTION; and 22 [(2)] (II) An amount, to be used for matching allotted purchases, which 23 shall be computed for each eligible county by dividing one half of the total amount to 24 be allotted equally among those counties having an approved program. The maximum 25 amount available from the Foundation for the Foundation's share in matching 26 allotted purchases may not exceed $1 million in any county in any fiscal year. 27 (2) FOR GENERAL ALLOTTED PURCHASES, EACH COUNTY WITH A 28 CERTIFIED PRIORITY PRESERVATION AREA SHALL RECEIVE AN AMOUNT EQUAL TO 29 THREE TIMES THE AMOUNT RECEIVED BY EACH COUNTY LACKING A CERTIFIED 30 PRIORITY PRESERVATION AREA. 31 (c) If the Foundation receives acceptances of offers to buy in insufficient 32 numbers to expend the total amount to be allotted for allotted purchases, the 33 Foundation, to the extent feasible, shall tender additional offers to buy in sufficient 34 numbers to expend the total amount to be allotted. Any such additional offers to buy 35 shall be tendered: 36 (1) To landowners who have applied to sell easements on land which was 37 otherwise acceptable, but who had not received an offer to buy solely because of 38 limitations on the amount of money to be spent for allotted purchases; 39 (2) To applicants on a statewide basis as provided by the priority ranking 40 system established under 2-510(e) of this subtitle; and

4 UNOFFICIAL COPY OF HOUSE BILL 1272 1 (3) Only after the expiration of the period allowed for acceptance of offers 2 to buy under allotted general and matching purchases. 3 2-509. 4 (a) The Foundation shall adopt regulations and procedures for: 5 (1) Establishment and monitoring of agricultural districts; 6 (2) Evaluation of land to be included within agricultural districts; [and] 7 (3) Purchase of easements, including the purchase of easements under 8 an installment purchase agreement; AND 9 (4) EVALUATION AND CERTIFICATION OF COUNTY PRIORITY 10 PRESERVATION AREAS. 11 (b) Regulations and procedures adopted by the Foundation for the 12 establishment and monitoring of agricultural districts shall provide that: 13 (1) One or more owners of land actively devoted to agricultural use may 14 file a petition with the county governing body requesting the establishment of an 15 agricultural district composed of the land owned by the petitioners. The petition shall 16 include maps and descriptions of the current use of land in the proposed district. 17 (2) Upon receipt of a petition to establish an agricultural district the 18 local governing body shall refer the petition and accompanying materials both to the 19 agricultural preservation advisory board and to the county planning and zoning body. 20 (i) Within 60 days of the referral of a petition, the agricultural 21 preservation advisory board shall advise the county governing body as to whether or 22 not the land in the proposed district meets the qualifications established by the 23 Foundation under subsection (c) of this section, and whether or not the advisory board 24 recommends establishment of the district. 25 (ii) Within 60 days of the referral of a petition, the county planning 26 and zoning body shall advise the local governing body as to whether or not 27 establishment of the district is compatible with existing and approved county plans 28 and overall county policy, and whether or not the planning and zoning body 29 recommends establishment of the district. 30 (3) If either the agricultural preservation advisory board or the planning 31 and zoning body recommends approval, the county governing body shall hold a public 32 hearing on the petition. Adequate notice of the hearing shall be given to all 33 landowners in the proposed district, and to the Foundation. 34 (4) (i) Within 120 days after the receipt of the petition, the county 35 governing body shall render a decision as to whether or not the petition shall be 36 recommended to the Foundation for approval.

5 UNOFFICIAL COPY OF HOUSE BILL 1272 1 (ii) If the county governing body decides to recommend approval of 2 the petition, it shall so notify the Foundation and forward to the Foundation the 3 petition and all accompanying materials, including the recommendations of the 4 advisory board and county planning and zoning body. 5 (iii) If the county governing body recommends denial of the petition, 6 it shall so inform the Foundation and the petitioners. 7 (5) The Foundation may approve a petition for the establishment of an 8 agricultural district only if: 9 (i) The land within the proposed district meets the qualifications 10 established under subsection (c) of this section; 11 (ii) The petition has been approved by the county governing body; 12 and 13 (iii) The establishment of the district is approved by a majority of 14 the Foundation board of trustees at-large, by the Secretary, and by the State 15 Treasurer. 16 (6) The Foundation shall render its decision on a petition to establish an 17 agricultural district within 60 days of the receipt of the petition, and shall inform the 18 county governing body and the petitioners of its decision. 19 (7) (i) If the Foundation approves the petition, the agricultural district 20 shall be established by an ordinance of the county governing body, however, the 21 establishment shall not take effect until all landowners in the proposed district have 22 executed and recorded along with land records an agreement with the Foundation 23 stipulating that for a period of five years from the establishment of the agricultural 24 district, the landowner agrees to keep his land in agricultural use and has the right to 25 offer to sell an easement for development rights on his land to the Foundation under 26 the provisions of this subtitle. 27 (ii) In the event of severe economic hardship the Foundation, with 28 the concurrence of the county governing body, may release the landowner's property 29 from the agricultural district. Any person aggrieved by a decision of the Foundation 30 regarding a determination of severe economic hardship is entitled to judicial review. 31 (iii) Nothing in this section shall preclude the landowner from 32 selling his property. 33 (8) At any time after five years from the establishment of a district a 34 landowner may terminate his property as an agricultural district by notifying the 35 Foundation one year in advance of his intention to do so. 36 (9) After the establishment of an agricultural district the county 37 governing body or the Foundation may review the use of land within the district.

6 UNOFFICIAL COPY OF HOUSE BILL 1272 1 (10) The Foundation may approve alteration or abolition of a district only 2 if: 3 (i) The use of land within the district has so changed as to cause 4 land within the district to fail to meet the qualifications established under subsection 5 (c) of this section; 6 (ii) The alteration or abolition of the district has been recommended 7 by the county governing body; and 8 (iii) The alteration or abolition is approved by a majority of the 9 Foundation board of trustees at-large, by the Secretary, and by the State Treasurer. 10 (c) Regulations and procedures adopted by the Foundation for the 11 establishment and monitoring of agricultural districts may not require, in Garrett 12 County or Allegany County, a natural gas rights owner or lessee to subordinate its 13 interest to the Foundation's interest if the Foundation determines that exercise of the 14 natural gas rights will not interfere with an agricultural operation conducted on land 15 in the agricultural district. 16 (d) Regulations and criteria developed by the Foundation relating to land 17 which may be included in an agricultural district shall provide that: 18 (1) Subject to item (2) of this subsection, land shall meet productivity, 19 acreage, and locational criteria determined by the Foundation to be necessary for the 20 continuation of farming; 21 (2) As long as all other criteria are met, land that is at least 50 acres in 22 size shall qualify for inclusion in an agricultural district; 23 (3) The Foundation shall attempt to preserve the minimum number of 24 acres in a given district which may reasonably be expected to promote the continued 25 availability of agricultural suppliers and markets for agricultural goods; 26 (4) Land within the boundaries of a 10-year water and sewer service 27 district may be included in an agricultural district only if that land is outstanding in 28 productivity and is of significant size; and 29 (5) Land may be included in an agricultural district only if the county 30 regulations governing the land permit the activities listed under 2-513(a) of this 31 subtitle. 32 (e) The Foundation may not purchase an easement on land which is located 33 outside an agricultural district established under this subtitle. 34 (F) (1) BEGINNING WITH FISCAL YEAR 2008, AND IN EACH FISCAL YEAR 35 THEREAFTER, THE FOUNDATION AND THE DEPARTMENT OF PLANNING SHALL 36 EVALUATE AND DETERMINE WHETHER A COUNTY PRIORITY PRESERVATION AREA, 37 ESTABLISHED IN THE PRIOR FISCAL YEAR, MAY BE CERTIFIED.

7 UNOFFICIAL COPY OF HOUSE BILL 1272 1 (2) THE FOUNDATION AND THE DEPARTMENT OF PLANNING MAY NOT 2 CERTIFY A COUNTY PRIORITY PRESERVATION AREA UNLESS THE FOUNDATION AND 3 THE DEPARTMENT OF PLANNING BOTH DETERMINE THAT COUNTY PLANS, POLICIES, 4 AND PROGRAMS ARE LIKELY TO BE EFFECTIVE IN PROTECTING PUBLIC INVESTMENT 5 IN PRESERVATION WITHIN THE PRIORITY PRESERVATION AREA, BASED ON THE 6 FOLLOWING CRITERIA: 7 (I) THE ABILITY OF ZONING AND RELATED LAND USE TOOLS TO: 8 1. STABILIZE LAND USE AND LIMIT SUBDIVISION AND 9 DEVELOPMENT COMMENSURATE WITH DEVELOPMENT PRESSURE; 10 2. PROVIDE TIME FOR EASEMENT PURCHASES TO PRESERVE 11 LARGE BLOCKS OF PRODUCTIVE LAND; AND 12 3. MAINTAIN A RURAL LANDSCAPE CAPABLE OF 13 SUPPORTING SOME DIVERSITY OF PROFITABLE FARMING AND FORESTRY 14 OPERATIONS THAT IS NOT EXCESSIVELY COMPROMISED AND RESTRICTED BY 15 DEVELOPMENT OR BY THE IMPACTS OF DEVELOPMENT, SUCH AS TRAFFIC, 16 CONFLICTS BETWEEN FARMERS AND THE NONFARM POPULATION, AND 17 INTERFERENCE WITH FARMERS' ABILITY TO ENGAGE IN ACCEPTED FARMING 18 PRACTICES; 19 (II) THE PERFORMANCE OF PRESERVATION EFFORTS, ESPECIALLY 20 IN PRESERVING LARGE BLOCKS OF PRODUCTIVE LAND; 21 (III) THE COMBINED PERFORMANCE OF CURRENT PLANNING, LAND 22 USE, AND CONSERVATION TOOLS, ESPECIALLY THE LIKELIHOOD THAT THESE 23 EFFORTS WILL RESULT IN RELATIVELY LARGE RURAL AREAS FREE FROM EXCESSIVE 24 DEVELOPMENT IMPACTS AND CAPABLE OF SUPPORTING PROFITABLE 25 AGRICULTURAL AND FOREST PRODUCTION; AND 26 (IV) ANY OTHER CRITERIA THAT THE FOUNDATION AND THE 27 DEPARTMENT OF PLANNING DETERMINE ARE IMPORTANT TO SUPPORT 28 ACHIEVEMENT OF THE FOUNDATION'S GOALS. 29 (G) (1) (I) A CERTIFICATION OF A COUNTY PRIORITY PRESERVATION 30 AREA IS EFFECTIVE FOR TWO FISCAL YEARS. 31 (II) A DECISION BY THE FOUNDATION AND THE DEPARTMENT OF 32 PLANNING AS TO CERTIFICATION IS FINAL WITH NO RIGHT TO APPEAL. 33 (2) AT THE REQUEST OF THE COUNTY, IF THE FOUNDATION AND THE 34 DEPARTMENT OF PLANNING BOTH DETERMINE THAT COUNTY PLANS AND 35 PROGRAMS REMAIN LIKELY TO BE EFFECTIVE IN PROTECTING PUBLIC INVESTMENT 36 IN PRESERVATION WITHIN THE PRIORITY PRESERVATION AREA, THE FOUNDATION 37 AND THE DEPARTMENT OF PLANNING SHALL RECERTIFY A COUNTY PRIORITY 38 PRESERVATION AREA.

8 UNOFFICIAL COPY OF HOUSE BILL 1272 1 (3) EACH YEAR, IN THE FOUNDATION'S ANNUAL REPORT, FILED IN 2 ACCORDANCE WITH 2-506 OF THIS SUBTITLE, THE FOUNDATION SHALL INCLUDE A 3 SECTION, PRODUCED JOINTLY WITH THE DEPARTMENT OF PLANNING THAT: 4 (I) IDENTIFIES CERTIFIED COUNTY PRIORITY PRESERVATION 5 AREAS AND AREAS THAT HAVE BEEN DENIED CERTIFICATION; AND 6 (II) EXPLAINS THE REASONS FOR THOSE DECISIONS IN TERMS OF 7 THE CONSIDERATIONS AND CRITERIA SPECIFIED IN THIS SUBSECTION. 8 (4) THE FOUNDATION AND THE DEPARTMENT OF PLANNING SHALL 9 JOINTLY ADOPT REGULATIONS FOR ADMINISTRATION OF PROCEDURES RELATING 10 TO THE CERTIFICATION OF COUNTY PRIORITY PRESERVATION AREAS UNDER THIS 11 SUBSECTION. 12 Article - Natural Resources 13 5-9A-05. 14 (a) A sponsor may file an application to designate a Rural Legacy Area in 15 accordance with a schedule established by the Board. A local government may not 16 apply for or approve an application for a Rural Legacy Area designation inside 17 another jurisdiction's boundaries without that jurisdiction's approval. 18 (b) (1) The application shall describe the proposed Rural Legacy Area, 19 include a Rural Legacy Area Plan, identify existing protected lands, state the 20 anticipated level of initial landowner participation in the Program and the amount of 21 the grant requested, and comply with the criteria set forth below. 22 (2) To qualify for additional funds appropriated above the level 23 appropriated in fiscal year 2000 as provided for in 12-1007(d) of the Public Safety 24 Article, an application shall include a certification that the local jurisdiction has not 25 adopted any local amendments to the Maryland Building Rehabilitation Code. 26 (c) The Board shall evaluate and compare applications in accordance with the 27 following criteria in order to select those that best carry forward the goals and 28 objectives of the Program set forth in 5-9A-01 of this subtitle: 29 (1) The significance of the agricultural, forestry, and natural resources 30 proposed for protection, including: 31 (i) The degree to which proposed fee or easement purchases will 32 protect the location, proximity, and size of contiguous blocks of lands, green belts or 33 greenways, or agricultural, forestry, or natural resource corridors; 34 (ii) The nature, size, and importance of the land area to be 35 protected, such as farmland, forests, wetlands, wildlife habitat and plant species, 36 vegetative buffers, or bay or waterfront access; and 37 (iii) The quality and public or economic value of the land;

9 UNOFFICIAL COPY OF HOUSE BILL 1272 1 (2) The degree of threat to the resources and character of the area 2 proposed for preservation, as reflected by patterns and trends of development and 3 landscape modifications in and surrounding the proposed Rural Legacy Area; 4 (3) The significance and extent of the cultural resources proposed for 5 protection through fee simple purchases, including the importance of historic sites 6 and significant archaeological areas; 7 (4) The economic value of the resource-based industries or services 8 proposed for protection through land conservation, such as agriculture, forestry, 9 recreation, and tourism; 10 (5) The overall quality and completeness of the Rural Legacy Plan, 11 including: 12 (i) The degree to which existing planning, zoning, and growth 13 management policies contribute to land conservation and the protection of cultural 14 resources; 15 (ii) The degree to which the proposed plan is consistent with the 16 applicable local comprehensive plan, including protection of sensitive areas and 17 mineral resources; 18 (iii) How well existing or new conservation programs are 19 coordinated with the proposed acquisition plan; 20 (iv) How well the plan will maximize acquisition of real property 21 interests in contiguous blocks of land within the Rural Legacy Area while providing 22 for protection of isolated acquisitions important to the plan; 23 (v) Provisions for protection of resources, such as voluntarily 24 granted or purchased easements, fee estate purchases, or gifts of lands; 25 (vi) How the sponsor plans to manage, prioritize, and sequence 26 easement and land acquisitions; 27 (vii) Methodology for prioritizing and valuing or appraising 28 easements; 29 (viii) Proposed titleholders for easement or fee estate acquisitions; 30 and 31 (ix) The quality of the proposed stewardship program for holding 32 and monitoring of easement restrictions in perpetuity; 33 (6) The strength and quality of partnerships created for land 34 conservation among federal, State, and local governments and land trusts for 35 implementing the plan, including: 36 (i) Financial support;

10 UNOFFICIAL COPY OF HOUSE BILL 1272 1 (ii) Dedication of staff and resources; and 2 (iii) Commitment to and development of local land conservation 3 policies, such as changes in zoning and use of transferable development rights; 4 (7) The extent to which federal or other grant programs will serve as a 5 funding match; and 6 (8) A sponsor's ability to carry out the proposed Rural Legacy Plan and 7 the goals and objectives of the Program. 8 (d) The Board: 9 (1) Shall review applications and may request additional information 10 from a sponsor; 11 (2) Shall submit applications to appropriate State agencies and to the 12 advisory committee established by this subtitle and consider any recommendations 13 made regarding the applications; and 14 (3) May negotiate the terms of an application and proposed Rural Legacy 15 Area and plan with a sponsor. 16 (e) (1) (I) IN THIS SUBSECTION THE FOLLOWING WORDS HAVE THE 17 MEANINGS INDICATED. 18 (II) "STRONG SUPPORTING PROGRAMS" MEANS PROGRAMS THAT 19 ARE PROTECTING RURAL RESOURCES AND PRESERVATION INVESTMENT 20 EFFECTIVELY. 21 (III) "LOW DEVELOPMENT PRESSURE" MEANS THAT DEVELOPMENT 22 IMPACTS ARE NOT LIKELY TO COMPROMISE CONSERVATION OBJECTIVES BEFORE 23 LARGE BLOCKS OF RESOURCE LAND HAVE BEEN PRESERVED, WITH OR WITHOUT 24 LAND USE PROTECTION. 25 (IV) "WEAK SUPPORTING PROGRAMS" MEANS PROGRAMS THAT ARE 26 NOT PROTECTING RURAL RESOURCES AND PRESERVATION INVESTMENTS 27 EFFECTIVELY OR ARE GIVING ONLY MARGINAL PROTECTION THAT, IN LIGHT OF 28 DEVELOPMENT PRESSURE, WILL NOT SUPPORT ACHIEVEMENT OF THE PROGRAM'S 29 GOALS. 30 (2) THE BOARD SHALL AWARD FUNDS ACCORDING TO THE PROCEDURE 31 SET FORTH IN THIS SUBSECTION. 32 (3) TO ENSURE THAT RURAL RESOURCES AND PRESERVATION 33 INVESTMENTS IN RURAL LEGACY AREAS ARE PROTECTED FROM THE 34 COMPROMISING IMPACTS OF DEVELOPMENT, THE BOARD, ASSISTED BY THE 35 DEPARTMENT OF PLANNING, SHALL EVALUATE THE ABILITY OF LOCAL ZONING, 36 RELATED LAND USE TOOLS, AND OTHER PRESERVATION PROGRAMS IN EACH 37 ESTABLISHED AND PROPOSED RURAL LEGACY AREA TO:

11 UNOFFICIAL COPY OF HOUSE BILL 1272 1 (I) STABILIZE LAND USE AND LIMIT SUBDIVISION AND 2 DEVELOPMENT COMMENSURATE WITH DEVELOPMENT PRESSURE; 3 (II) PROVIDE TIME FOR EASEMENT PURCHASES TO PRESERVE 4 LARGE BLOCKS OF RESOURCE LAND THAT ARE NOT EXCESSIVELY COMPROMISED BY 5 DEVELOPMENT AND THE RELATED IMPACTS OF DEVELOPMENT; 6 (III) MAINTAIN A RURAL LANDSCAPE CAPABLE OF SUPPORTING THE 7 NATURAL, AGRICULTURAL, FORESTRY, AND CULTURAL RESOURCES AND 8 RESOURCE-BASED INDUSTRIES TARGETED FOR CONSERVATION IN THE RURAL 9 LEGACY AREA; AND 10 (IV) MAKE FEASIBLE THE SUCCESSFUL PRESERVATION OF THE 11 NATURAL, AGRICULTURAL, ENVIRONMENTAL, FORESTRY, AND CULTURAL 12 RESOURCES, AS WELL AS THE FARMING, FORESTRY, AND OTHER RESOURCE-BASED 13 USES OF THE AREA. 14 (4) BASED ON THE CONSIDERATIONS DESCRIBED IN PARAGRAPH (3) OF 15 THIS SUBSECTION, SUPPORTING PROGRAMS AND DEVELOPMENT PRESSURE IN EACH 16 AREA SHALL BE CLASSIFIED IN ONE OF THE FOLLOWING WAYS: 17 (I) STRONG SUPPORTING PROGRAMS; 18 (II) LOW DEVELOPMENT PRESSURE; OR 19 (III) WEAK SUPPORTING PROGRAMS. 20 (5) (I) RURAL LEGACY AREAS WITH STRONG SUPPORTING PROGRAMS 21 OR LOW DEVELOPMENT PRESSURE SHALL BE PRIMARY INVESTMENT AREAS AND 22 SHALL RECEIVE GRANTS IN ACCORDANCE WITH PARAGRAPH (6)(I) OF THIS 23 SUBSECTION. 24 (II) AREAS WITH WEAK SUPPORTING PROGRAMS SHALL BE 25 SECONDARY INVESTMENT AREAS AND SHALL RECEIVE GRANTS IN ACCORDANCE 26 WITH PARAGRAPH (6)(II) OF THIS SUBSECTION. 27 (6) BEGINNING WITH FISCAL YEAR 2008, AND IN EACH FISCAL YEAR 28 THEREAFTER: 29 (I) PRIMARY INVESTMENT AREAS SHALL RECEIVE GRANTS THAT, 30 ON AVERAGE, TOTAL 75% OR MORE OF ALL FUNDS AWARDED ANNUALLY, EXCEPT AS 31 PROVIDED IN PARAGRAPH (7) OF THIS SUBSECTION; AND 32 (II) SECONDARY INVESTMENT AREAS SHALL RECEIVE GRANTS 33 THAT, ON AVERAGE, TOTAL 25% OR LESS OF ALL FUNDS AWARDED ANNUALLY, 34 EXCEPT AS PROVIDED IN PARAGRAPH (7) OF THIS SUBSECTION. 35 (7) PERCENTAGES OF FUNDS DISTRIBUTED AMONG PRIMARY AND 36 SECONDARY INVESTMENT AREAS MAY VARY FROM THOSE REQUIRED UNDER

12 UNOFFICIAL COPY OF HOUSE BILL 1272 1 PARAGRAPH (6) OF THIS SUBSECTION FOR ONE OR MORE OF THE FOLLOWING 2 REASONS: 3 (I) THE BOARD CONCLUDES THAT SPONSORS OF PRIMARY 4 INVESTMENT AREAS ARE UNABLE TO EFFECTIVELY USE FUNDS IN THE AMOUNTS 5 THE SPONSORS WOULD RECEIVE UNDER THE DISTRIBUTION FORMULA REQUIRED 6 UNDER PARAGRAPH (6) OF THIS SUBSECTION IN A FISCAL YEAR; 7 (II) THE BOARD CONCLUDES THAT IT IS ESSENTIAL TO TAKE 8 ADVANTAGE OF OPPORTUNITIES TO PRESERVE SPECIFIC PROPERTIES OF 9 EXCEPTIONAL RESOURCE VALUE IN SECONDARY INVESTMENT AREAS IN A FISCAL 10 YEAR; OR 11 (III) THE BOARD CONCLUDES FOR OTHER REASONS, AND 12 ARTICULATES THOSE REASONS, THAT IT WILL BETTER SERVE THE PURPOSE OF THE 13 RURAL LEGACY PROGRAM TO ALLOCATE A HIGHER SHARE OF TOTAL FUNDS TO 14 SECONDARY INVESTMENT AREAS IN A FISCAL YEAR. 15 (8) SECONDARY INVESTMENT AREAS SHALL BECOME THE PRIMARY 16 INVESTMENT AREAS WHEN IT IS DETERMINED THAT THEY MERIT 17 RECLASSIFICATION ACCORDING TO THE EVALUATION AND CLASSIFICATION 18 PROCEDURES SET FORTH IN PARAGRAPHS (3) AND (4) OF THIS SUBSECTION. 19 (9) EACH YEAR, IN THE BOARD'S ANNUAL REPORT, FILED IN 20 ACCORDANCE WITH 5-9A-07(G) OF THIS SUBTITLE, THE BOARD SHALL INCLUDE A 21 SECTION, PRODUCED JOINTLY WITH THE DEPARTMENT OF PLANNING, THAT: 22 (I) IDENTIFIES PRIMARY AND SECONDARY INVESTMENT AREAS; 23 (II) IDENTIFIES THE AMOUNT OF FUNDS AWARDED TO EACH AREA; 24 AND 25 (III) EXPLAINS THE REASONS FOR THOSE DECISIONS IN TERMS OF 26 THE CONSIDERATIONS AND CRITERIA SPECIFIED IN THIS SUBSECTION. 27 (F) (1) A sponsor shall assure adequate public participation in the 28 development of an application and provide the Board with a summary of that 29 participation. 30 (2) (i) If an application proposes a Rural Legacy Area be located 31 within 1 mile of the boundary of a municipal corporation, the municipal corporation 32 shall have 45 days to review and comment on the application before the application is 33 submitted to the Board. 34 (ii) The sponsor shall submit to the Board with the completed 35 application a summary of the comments from the municipal corporation. 36 [(f)] (G) (1) A land trust shall consult with a local government prior to filing 37 an application.

13 UNOFFICIAL COPY OF HOUSE BILL 1272 1 (2) The Board may not approve or amend an application without local 2 government approval. 3 [(g)] (H) The right of public access may not be required under a conservation 4 easement. 5 [(h)] (I) A land trust may not hold exclusive title to real property interests 6 acquired under this subtitle. 7 [(i)] (J) An easement acquired under this subtitle is perpetual and may not 8 be extinguished or released. 9 [(j)] (K) (1) With the approval of a landowner, funds under this Program 10 may be used to purchase a development right as part of an easement or fee estate 11 acquisition. A development right shall be held by the titleholder and the Board and 12 may be sold only within the same jurisdiction pursuant to local law. 13 (2) In a county with a locally adopted transferable development rights 14 program and with the approval of the county, funds under this Program may be used 15 to purchase transferable development rights in the county in accordance with the 16 locally adopted transferable development rights program. 17 (3) The right to resell the development right shall be stated in the 18 instrument of purchase. 19 (4) The Rural Legacy Board shall maintain records concerning: 20 (i) Real property from which transferable development rights are 21 purchased; and 22 (ii) Real property to which rights are resold and transferred. 23 (5) The county shall provide to the Board information relating to the 24 records required in paragraph (4) of this subsection. 25 (6) Transferable development rights may be resold only to owners or 26 option purchasers of real property located in priority funding areas, including 27 municipalities, within the county in which the rights were purchased. 28 (7) (i) The proceeds associated with the resale of transferable 29 development rights shall be distributed only as described in this paragraph. 30 (ii) Fifty percent of the proceeds shall be used by the local 31 government in which the development using transferable development rights is 32 located to fund capital projects in the county or municipal corporation which is 33 receiving transferable development rights. Funds shall be distributed to the 34 municipal corporation if the receiving area is within the corporate limits of a 35 municipal corporation.

14 UNOFFICIAL COPY OF HOUSE BILL 1272 1 (iii) Fifty percent of the proceeds shall be returned to the Rural 2 Legacy Program for use in the county in which the proceeds were generated. 3 (iv) Proceeds may not be used for operating expenses. 4 [(k)] (L) All easement acquisitions must be recorded among the land records 5 where the real property is located. 6 [(l)] (M) State or local condemnation authority may not be used to acquire real 7 property interests under this Program. 8 [(m)] (N) Funds may be used for the protection of historic sites or significant 9 archeological areas that otherwise meet the goals of this Program only if the sponsor 10 is acquiring real property interests through a fee simple purchase. 11 [(n)] (O) A land or mineral owner who participates in this Program may 12 reserve mineral rights for extraction in accordance with applicable law and the terms 13 of the easement or fee acquisition. 14 [(o)] (P) In its determination under subsection (c) of this section, the Rural 15 Legacy Board may not make its determination solely on the basis of whether a county 16 has adopted a transferable development rights program authorizing Rural Legacy 17 Board purchases and sales of transferable development rights. 18 Article - State Finance and Procurement 19 5-307. 20 (a) Each year, no later than 60 days before the General Assembly convenes for 21 its regular session, the Department shall submit a report to the Governor. 22 (b) The annual report shall include: 23 (1) a summary and description of the nature of every section of the State 24 Development Plan that has been: 25 (i) added, deleted, or revised since the last annual report; and 26 (ii) filed by the Governor under 5-605 of this title; 27 (2) a summary of each important study wholly or partly completed by the 28 Department since the last annual report; [and] 29 (3) summaries of the work of the Department and of the State Economic 30 Growth, Resource Protection, and Planning Commission; AND 31 (4) A SUMMARY OF THE DEPARTMENT'S FINDINGS AND CONCLUSIONS 32 ABOUT THE EFFECTIVENESS OF STATE LAND AND RESOURCE CONSERVATION 33 EXPENDITURES, IN ACCORDANCE WITH ITS RESPONSIBILITIES TO:

15 UNOFFICIAL COPY OF HOUSE BILL 1272 1 (I) EVALUATE AND CERTIFY COUNTY PRIORITY PRESERVATION 2 AREAS, IN ACCORDANCE WITH 2-509(F) AND (G) OF THE AGRICULTURE ARTICLE; 3 AND 4 (II) EVALUATE AND CLASSIFY RURAL LEGACY AREAS, IN 5 ACCORDANCE WITH 5-9A-05 OF THE NATURAL RESOURCES ARTICLE. 6 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 7 October 1, 2006.